Chase Bank has today launched a 7 year Ksh. 10 Billion multi-currency corporate bond. The bond will enable the Kenyan bank to raise additional capital to strengthen its capital base and finance its expansion.
The bond will be issued in several tranches. The first tranche, will be issued in Kenya Shillings, and Chase Bank will be looking to raise Ksh. 3 Billion. There will also be a Green Shoe Option of Ksh. 2 Billion where the bank will take additional funds to the tune of 2 Billion in case the first tranche is oversubscribed.
The Chase Bank bond will offer a return of 13.1% which they say is the highest yielding corporate bond when compared to others that have been issued over the last two years. The minimum investment amount that will accepted will be Ksh. 100,000 & in multiples of KES 100,000 thereafter.
The proceeds from the bond will be used to strengthen the bank’s core capital, support lending to its key target segments SME’s, Youth, Women, and Agri business. It will also be used to finance expansion of the branch network, investment in IT and product development initiatives.
Chairman of the bank Mr. Zafrullah Khan revealed that the bank which is celebrating 20 years of existence has recorded impressive growth over the years. “Our recently released Quarter One 2015 results illustrate the sustained growth of the bank which is well on course for another year of record profitability. This proves that this is the right bank to invest in.â€
Total Assets of the bank grew by 36% to Kes.119.5Bn in Quarter 1 2015 compared to a similar period in 2014 while Profit after Tax rose 47% to Kes.634 Million over the same period.
Genghis Capital Investment Bank, an associate company of Chase Bank, is the Lead Transaction Advisor and Co Placing Agent while NIC Capital is the Co-Arranger and Co-Placing Agent for the issue.